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Proactive Risk Management : Controlling Uncertainty in Product Development - Guy M. Merritt

Proactive Risk Management

Controlling Uncertainty in Product Development

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Listed as one of the 30 Best Business Books of 2002 by Executive Book Summaries

Proactive Risk Management's unique approach provides a model of risk that is scalable to any size project or program and easily deployable into any product development or project management life cycle. It offers methods for identifying drivers (causes) of risks so you can manage root causes rather than the symptoms of risks.

Providing you with an appropriate quantification of the key factors of a risk allows you to prioritize those risks without introducing errors that render the numbers meaningless. This book stands apart from much of the literature on project risk management in its practical, easy-to-use, fact-based approach to managing all of the risks associated with a project. The depth of actual how-to information and techniques provided here is not available anywhere else.

Prefacep. xi
Introductionp. xv
What Is Risk and How Is It Managed?p. 1
Example of Project Risksp. 1
Risk Management and Product Developmentp. 3
What Is a Risk?p. 5
Uncertaintyp. 5
Lossp. 7
Time Componentp. 7
Why Companies Fail in Managing Riskp. 8
Cross-Functionalityp. 8
Proactivenessp. 10
The Antithesis of Risk Management: Firefightingp. 11
How Much Risk Management?p. 12
Risk As an Allyp. 13
Attitudes toward Riskp. 14
Summaryp. 15
Supplementary Readingp. 16
Using Project Risk Modelsp. 17
Standard Risk Modelp. 19
Simple Risk Modelp. 21
Cascade Risk Modelp. 22
Ishikawa Risk Modelp. 24
Summaryp. 25
Supplementary Readingp. 26
The Risk Management Processp. 29
Overview of the Processp. 29
Identifying Project Risksp. 31
Analyzing Risksp. 32
Prioritizing and Mapping Risksp. 34
Planning Resolution of Targeted Risksp. 36
Monitoring Project Risksp. 38
Summaryp. 40
Supplementary Readingp. 40
Step 1--Identifying Project Risksp. 43
Plan and Preparep. 43
Assemble a Diversity of Opinionp. 45
Verify Risk Management Knowledge and Explain Project Detailsp. 46
Get Participants Thinking Creativelyp. 47
Start Early--But Not Too Earlyp. 48
Capturing Project Risksp. 49
Schedule Basedp. 50
Development Process Basedp. 51
Success-Thwarting Basedp. 52
Prompt-List Basedp. 53
Facilitating the Sessionp. 55
Balance between Optimism and Pessimismp. 55
Running Examplep. 56
Summaryp. 57
Supplementary Readingp. 58
Step 2--Analyzing Risksp. 61
Establish the Factsp. 63
Conducting the Workshopp. 64
Developing Risk Event Driversp. 66
Developing Impact Driversp. 67
Quantifying Total Lossp. 68
Risk Scaling Considerationsp. 70
Calculate the Riskp. 72
Probability Estimation Techniquesp. 73
Estimate Risk Event Probabilityp. 74
Estimate Risk Impact Probabilityp. 75
Calculate Expected Lossp. 76
Working with Differing Units and Qualitative Scalesp. 77
Running Examplep. 80
Summaryp. 82
Supplementary Readingp. 83
Step 3--Prioritizing and Mapping Risksp. 85
How to Prioritizep. 86
Sort Risks by Expected Lossp. 86
Develop a Risk Mapp. 87
Develop a Prioritized Listp. 93
Communicate the Prioritized Listp. 96
Running Examplep. 97
Summaryp. 98
Supplementary Readingp. 99
Step 4--Planning Resolution of Targeted Risksp. 101
Risk Resolution Processp. 102
Action Planningp. 104
Avoidancep. 106
Transferp. 107
Redundancyp. 108
Mitigationp. 109
Mitigation Actionsp. 110
Prevention Planningp. 111
Contingency Planningp. 113
Reservesp. 114
Balancing Benefits with Costp. 115
Running Examplep. 117
Summaryp. 120
Supplementary Readingp. 120
Step 5--Monitoring Project Risksp. 121
Ongoing Risk Managementp. 122
Progress on Resolutionp. 125
Terminating Action Plans for Risks Successfully Resolvedp. 127
Identifying New Risksp. 129
Initiating New Action Plansp. 130
Communicationp. 131
Product Development Team Communicationp. 132
Risk Management Metricsp. 133
Strategic Metricsp. 134
Tactical Metricsp. 136
Risk Status Trendp. 137
Current Risk Statusp. 138
Active Risk Loss Summationsp. 138
Active versus Inactive Lossesp. 139
Running Example--Conclusionp. 140
Summaryp. 143
Supplementary Readingp. 143
Risk Management Toolkitp. 145
Sticky Densityp. 145
Sticky Density for Risk Identificationp. 146
Retrospective Application to Root Causesp. 146
General Guidance on the Sticky Density Techniquep. 147
Spreadsheetsp. 148
Decision Analysisp. 149
Decision Analysis Methodologyp. 150
Decision Analysis Examplep. 152
Risk Simulationp. 153
Design Structure Matrixp. 156
Summaryp. 161
Supplementary Readingp. 161
Risk Management Approaches and Strategiesp. 163
Avoid Risk When It Does Not Add Valuep. 163
Stay Flexible on Unresolved Issuesp. 165
Maintain Contact with Customersp. 166
Address the Risky Items Firstp. 168
Apportion Risk Carefullyp. 170
Test at a Low Levelp. 172
Use Failure to Your Advantagep. 173
Summaryp. 175
Supplementary Readingp. 175
Implementing a Project Risk Management Program Successfullyp. 177
Fitting Risk Management into Project Managementp. 178
Build Risk Management into All Project Phasesp. 180
Provide Data Management Toolsp. 181
Implementation Guidancep. 182
Consider Risk Also As an Opportunityp. 182
Train Your Peoplep. 183
Make Risk a Concern of Managementp. 184
Take Potential Problems Seriouslyp. 184
Spare the Messengerp. 185
Do Not Let the Engineers Run Project Risk Managementp. 186
Collect and Publicize Risk Metricsp. 187
Jump Inp. 187
Do Not Oversell Project Risk Managementp. 188
Continuously Improve Your Implementationp. 188
Extract the Learning from Each Projectp. 189
Summaryp. 191
Supplementary Readingp. 191
Case Studies from Allied Fieldsp. 193
Manufacturing Ramp-Up Case Studyp. 193
Identify Riskp. 193
Analyze Riskp. 194
Prioritize and Map Riskp. 195
Plan Resolutionp. 196
Monitor Riskp. 198
Embedded Software Development Case Studyp. 200
Identify Riskp. 200
Analyze Riskp. 201
Prioritize and Map Riskp. 202
Plan Resolutionp. 203
Monitor Riskp. 205
Summaryp. 207
Supplementary Readingp. 207
Glossaryp. 209
Indexp. 213
Table of Contents provided by Syndetics. All Rights Reserved.

ISBN: 9781563272653
ISBN-10: 1563272652
Audience: Professional
Format: Paperback
Language: English
Number Of Pages: 248
Published: 17th June 2002
Country of Publication: US
Dimensions (cm): 25.4 x 17.8  x 1.3
Weight (kg): 0.45
Edition Number: 1